Equifax score and new mortgage

bjg1205 · ‎03-24-2014

Hello Everyone,

We are currently building a home that will be done in late June/early July and thought I would check on my scores just for kicks. The equifax number really got me worried at 678. TU was 733 and EX was 723. Last time I checked my 3 scores was back in early January. That was right after we sold our house and they were EQ 706, TU 723 and EX 720 . We are renting at the moment in short term housing while our home is being built. Do you all think the home sale was the big reason for the EQ score drop? I'm kind of nervous now with that number being so low that the lenders will be more hesitant to give me a good deal. What do you think? Thanks!

p- · ‎03-24-2014

bjg1205 wrote: Do you all think the home sale was the big reason for the EQ score drop?

You need to put the old report and new report side by side and go through each line to see what is different. What has changed between now and then? Is there a new derogatory account? What is your utilization percent, and how many cards have balances? In order for us to answer your question, we need more information.

bjg1205 · ‎03-24-2014

Well, looks like there was a change but not sure why. I have practically 0 credit "card" debt but recently got a credit limit increase from $1500 to $2500. Still, my balance is no more than $250. The old report had a utilization of 15%, now this one is 6%. That is the only change outside of the house being sold in January. No derog's, lates or anything negative..

i have 2 current auto loans but no "credit card" debt...

p- · ‎03-24-2014

@bjg1205 wrote:
Well, looks like there was a change but not sure why. I have practically 0 credit "card" debt but recently got a credit limit increase from $1500 to $2500. Still, my balance is no more than $250. The old report had a utilization of 15%, now this one is 6%. That is the only change outside of the house being sold in January. No derog's, lates or anything negative..
i have 2 current auto loans but no "credit card" debt...

Hmm... Let me make sure I have this right. you closed (paid off) a mortgage, and otehrwise there are no new accounts, only 1 card with a balance, utilization at 6%, no derogs new or otherwise... Did any very old accounts drop off? Do you have any new inquiries?

p- · ‎03-24-2014

Did the "last updated" field change on any old derogatory accounts?

bjg1205 · ‎03-24-2014

1 new inquiry to get "pre-approved" for mortgage. No new updates I could find on anything except for the credit limit increase. There are derogs and 2 public records on there but the derogs are over 4 years old and the public records are roughly 7 years old. I just find it weird that both EX and TU went up while EQ went down almost 30 points. I looked on Credit Karma and my overall score also went down 15 points to a 680. I know Credit Karma is not the real deal and always pull my scores from here, but was just curious to see what they had.

ezdriver · ‎03-24-2014

@bjg1205 wrote:
Hello Everyone,
We are currently building a home that will be done in late June/early July and thought I would check on my scores just for kicks. The equifax number really got me worried at 678. TU was 733 and EX was 723. Last time I checked my 3 scores was back in early January. That was right after we sold our house and they were EQ 706, TU 723 and EX 720 . We are renting at the moment in short term housing while our home is being built. Do you all think the home sale was the big reason for the EQ score drop? I'm kind of nervous now with that number being so low that the lenders will be more hesitant to give me a good deal. What do you think? Thanks!

What is the source of those numbers?

bjg1205 · ‎03-25-2014

Scores and credit report were pulled from here. myfico.com

p- · ‎03-25-2014

@bjg1205 wrote:
1 new inquiry to get "pre-approved" for mortgage. No new updates I could find on anything except for the credit limit increase. There are derogs and 2 public records on there but the derogs are over 4 years old and the public records are roughly 7 years old. I just find it weird that both EX and TU went up while EQ went down almost 30 points. I looked on Credit Karma and my overall score also went down 15 points to a 680. I know Credit Karma is not the real deal and always pull my scores from here, but was just curious to see what they had.

A fresh inquiry could be part of it. Look closely at the payment history and last updated fields on the Public Records and Derogs. Even if the DOFD hasn't changed, a change to those fields can hurt you.

I reccomend you work on getting those removed if you can.

ezdriver · ‎03-25-2014

@bjg1205 wrote:
Scores and credit report were pulled from here. myfico.com

OK ...

I have seen others post that the EQ score from myFICO is equivalent to the EQ score that a lender will see when it pulls a trimerge credit report for you. For the other two, the lender will see a score that, if similar to what you got here, will be purely accidental. If you truly want to know if your credit profile will likely support a mortgage application, then have a loan officer pull a trimerge report and give you a copy.

Also, I believe that the sale of your home and the subsequent payoff on the mortgage cause your score to drop. It represents the loss of an active tradeline. When you add a new mortgage it will recover.